Bitcoin Surge Above $51,000

The BTC/USD ended the day at $51,508.0, having reached a top of $51,891.1 and a low of $49,065.0. BTC/USD resumed its upward trend, surging for the third consecutive session on Tuesday, breaking beyond $50,000 for the first time since El Salvador's acceptance.

The world's largest cryptocurrency by market value surpassed $50,000 for the first time in four weeks, owing to growing institutional interest in the currency. Banks and financial institutions were increasingly investing in bitcoin to meet increased investor demand, increasing the value of the BTC/USD.

The U.S. Bank, the 5th-largest bank in the United States, revealed on Tuesday that its bitcoin custody service is now available to fund managers. Gunjan Kedia, the vice-chair of the bank's wealth management and investment service business, stated that the offering would assist investment managers in storing private keys for bitcoin, bitcoin cash, and litecoin through sub-custodian NYDIG. He said that in the future, support for additional cryptocurrencies like Ethereum would be implemented.

This was the latest indication that traditional financial institutions were beginning to recognize cryptocurrencies as a viable asset class. Kedia stated that their clients were becoming increasingly interested in the possibilities of cryptocurrencies as a diversified asset class, and she also stated that she does not believe there was a single asset manager who was not considering it right now. These comments contributed to the rise in BTC/USD values.

Data from digital asset manager CoinShares showed that bitcoin investment products and funds saw inflows for the 7th week in a row on Monday, as institutional investors warmed to more encouraging pronouncements from regulators.

On Tuesday, the specialist crypto tracker and research provider CoinDesk published a market analysis that indicated a 25% rise for bitcoin and a 32% gain for ether during the third quarter. As per the paper, there has been an increase in NFT, which uses blockchain to record the ownership of digital things such as images, films, collectibles, and even land in virtual worlds. In the third quarter, the sale of NFT increased to $10.7 billion.

Furthermore, the Nicklaus Children's Hospital Foundation announced on Tuesday that it has begun collecting bitcoin donations. This non-profit organization in South Florida caters to the needs of Nicklaus Children's Hospital children and families. They hope to provide donors with an alternate and tax-advantaged gift mechanism. However, it was unclear whether or not the group would keep BTC. The relationship with The Giving Bock will enable the new giving mechanism. This news also contributed to the rise in BTC/USD values.

BTC/USD Intraday Technical Levels

Support Resistance

49751.7 52577.8

47995.3 53647.5

46925.5 55403.9

Pivot Point: 50821.4

BTC/USD - Technical Outlook

Bitcoin's technical analysis shows that it has a strong bullish bias, with the currency now trading around $51,424 USD. BTC/USD has already surpassed the pivot point of 50,900. The closure of candles over the 50,900 level confirms Bitcoin's strong bullish trend.

On the upside, Bitcoin is expected to hit an instant resistance mark of 52,585. Any violation of the 52,585 level, on the other hand, has the potential to push Bitcoin prices up to the 53,669 level. A violation of the 50,900 level, on the other hand, might spark a powerful selling trend in Bitcoin to the 49,745 and 47,990 levels.

The leading technical indicator, such as the RSI, is still in the bullish territory. As a result, the prospects of a positive trend continuation on Tuesday remain high. The 50-days SMA in Bitcoin is supporting a strong bullish trend. All the best!

Eyes on ISM Services PMI from US

Gold prices were closed at $1768.70 after reaching a high of $1771.45 and a low of $1747.85. Gold remained bullish with minor gains on Monday as the U.S. dollar was weak across the board. The U.S. Dollar Index, which measures the greenback's value against a basket of six major currencies, fell for the fourth consecutive session on Monday by 0.3% and reached 93.68 as concerns over higher inflation and a slowdown in economic growth weighed on the firm dollar.

Inflation was not slowing down as initially expected by the Fed, and fears were raised that it could start negatively impacting economic growth, which added pressure on the U.S. dollar and dragged DXY from its highs this week. Whereas the U.S. The Treasury yield on the benchmark 10-year note moved higher on Monday and reached 1.50%.

As expected earlier, the concerns that inflation would be persistent instead of short-lived raised questions about its impact on economic growth, which ultimately added to the risk-off market sentiment. Furthermore, uncertainty in the market continued to increase with the fresh U.S.-China concerns over trade and Taiwan.

On Monday, the Biden Administration criticized China for not fulfilling the clauses of the trade deal signed with the U.S. in the final year of the Trump administration. The U.S. representative in negotiations with China, Katherine Tai, has said that she will hold trade talks with her Chinese counterpart in the coming days to discuss the phase-1 deal reached in 2020 and trade concerns. She added that the U.S. did not want to inflame trade tensions with China, but Beijing had not adhered to all of its purchase commitments.

On the other hand, China blamed the United States on Monday for increased tensions over Taiwan and vowed to smash any separatist plots, as the island reported the largest ever incursion by the Chinese air force. These developments added to the market's uncertainty and supported the risk-off market sentiment that pushed gold higher on Monday.

On the data front, there was no specific macroeconomic data release on Monday. At 19:00 GMT, the factory orders from August remained flat with an expected 1.2%. Investors now await September's U.S. Non-farm payrolls data due on Friday. Additionally, U.S. President Joe Biden said on Monday that the top line of the social safety net package needed to be declined to somewhere between $1.9 trillion and $22 trillion. This also added to the risk-off market sentiment and supported the yellow metal.

GOLD Intraday Technical Level

Support Resistance

1753.89 1777.49

1739.07 1786.27

1730.29 1801.09

Pivot Point: 1762.67

GOLD - Technical Outlook 

On Tuesday, the precious metal gold was trading at $1,756 with a bearish bias. It is getting immediate support at the 1,754 level, which has been extended by an intraday pivot point. Gold has violated the pivot point support level of 1,762, which is now exposing gold towards the 1,754 support level.

On the lower hand, the breakout of the 1,754 level exposes the precious metal towards the 1,747 and 1,739 levels. Further, on the lower side, the violation of 1,739 exposes gold towards the 1,731 level.

On the bullish side, gold’s next resistance stays at the 1,762 level and a breakout of this exposes the pair towards the 1,770 level.

The RSI and Stocahstic are supporting a selling trend in gold, thus, the bearish bias dominates below 1,762 and vice versa. Good luck!

Eyes on Services PMI Figures

The EUR/USD pair ended the day at $1.1621, having reached a high of $1.1641 and a low of $1.587.The EUR/USD continued with its bullish momentum for the third consecutive session on Monday as the U.S. dollar was weak across the board despite the prevailing energy crisis in Europe. The U.S. Dollar Index, which measures the value of the greenback against a basket of six major currencies, fell on Monday to 93.68, as inflation concerns rose in the market. The U.S. dollar remained under pressure despite a relatively risk-off market mood and the expectation that the Fed will begin tapering bond purchases next month.

The main reason behind the declining price of the U.S. dollar could be attributed to the risk of the U.S. defaulting on its debt as Democrats and Republicans remain divided over the best way to raise the debt ceiling. Tensions increased on Monday as the time to reach a deal on the $28.4 trillion debt ceiling by the U.S. federal government was getting closer. Just two weeks remained to reach a deal, but both parties were reluctant to join each other in voting.

Meanwhile, President Joe Biden has called Republicans to join Democrats in voting to raise the debt ceiling in the next two weeks. All these developments kept the U.S. dollar under pressure, which pushed the EUR/USD currency pair higher on Monday.

On the data front, at 12:00 GMT, the Spanish Unemployment Change for September came in as -76.1K against the previous -82.6K. At 13:30 GMT, the Sentix Investor Confidence declined to 16.9 against the forecasted 18.5 and weighed on the single currency Euro and caped further gains in EUR/USD. From the U.S. side, at 19:00 GMT, factory orders from August remained unchanged at 1.2%.

On Monday, during the Eurogroup meeting in Luxembourg, the European ministers put forth the agenda of the energy crisis. Growing international demand and a sudden economic recovery have prompted a surge in natural gas prices. Energy prices increased by six-fold in less than one year, from €16 megawatts per hour in January to €98 by late September. The meeting suggested that the willingness of East Asian counties to pay more for fuel has exacerbated the trend during the summer when high temperatures pushed people to use air-conditioning and cooling systems.

After the release of September’s inflation figures from Europe, the energy crunch took hype as the inflation figures reached 3.4%, which was far from the 2% target of the ECB. The inflation rate for energy prices exceeded 17%. The unbearable spike in energy prices has weighed heavily on EU citizens and companies as well, which has raised concerns over the economic growth of the sector.

EUR/USD Intraday Technical Levels

Support Resistance

1.1595 1.1637

1.1583 1.1649

1.1562 1.1672

Pivot Point: 1.1616

EUR/USD - Technical Outlook 

The EUR/USD currency pair is trading at 1.1599 level and it’s gaining immediate support at 1.1590 level. Such support is extended by the double bottom pattern, and a break below this level exposes the pair to the 1.1563 and 1.1537 levels. On the higher side, the breakout of the 1.1615 level exposes the EUR/USD pair towards 1.1645.

On the lower side, the bears may find support at the 1.1562 level, whereas the violation of 1.1562 exposes the pair towards 1.1538 and 1.1523 levels. The EUR/USD has formed an upward channel that’s supported the pair at the 1.1615 level and now it’s working as a resistance.

The closing of a Doji candle above the 1.1590 level has the potential to trigger a bullish bounce-off in the EUR/USD pair today. Thus, traders will be keeping an eye on the 1.1590 level as a bullish bias dominates above this and vice versa. All the best!

Double Top Pattern Breakout

The last time BTC/USD was spotted was $48,252.0, with a high of $48,503.0 and a low of $46,951.0. As market conditions improved, BTC/USD increased its gains on Monday, reaching its highest level since September 7. On Monday, the market valuation of Bitcoin surpassed that of the social media network Facebook. The Bitcoin market cap surpassed $929.014 billion, surpassing Facebook's market cap of $922.755 billion.

Bitcoin has increased by 360 percent in the last year, while Facebook has increased by 22 percent. It appeared that Facebook was simply another colossus felled on its way to becoming the world's most valuable asset. However, it should be highlighted that Facebook is a social media network firm, whereas Bitcoin is a monetary asset. Nonetheless, Facebook is a large social media site, and surpassing its market cap could not be ignored. This news bolstered the BTC/already USD's high pricing on Monday.

Meanwhile, UFC icon Jorge Masvidal's bare-knuckle MMA outfit Gamebred Fighting Championship has teamed with Legacy Records to give out Bitcoin to fighters. Legacy Records previously sponsored the first Gamebred Fighting Championship event on June 18, after which company CEO Keishia McLeod presented the fighters with four bitcoin-loaded hardware wallets containing prize money. This announcement also boosted the price of BTC/USD because it demonstrated bitcoin's rising use and popularity.

On the other side, Aurero Ribeiro, Brazil's Federal Deputy, has stated that citizens will soon be allowed to buy houses, vehicles, and even McDonald's using Bitcoin following the new law's approval. The discussion about the adoption of the top cryptocurrency in Brazil has been raging for a few years, and on Monday, the country's Federal Deputy hinted that the government was on the point of finalizing plans to make Bitcoin legal money with the support of the Central Bank of Brazil. Brazil has the world's ninth-largest economy, and its adoption of Bitcoin as legal cash will significantly impact BTC/USD pricing.

Furthermore, Bank of America has launched its paper "Digital Assets Primer: Only the First Inch," which gives an in-depth analysis of the current situation of the blockchain business, ranging from cryptocurrencies to DeFi and NFTs. According to the report, the cryptocurrency sectors have grown to a size that cannot be ignored. This also added to the strength of the BTC/USD pricing.

On the other hand, China's recent cryptocurrency ban has forced Chinese miners to the Kyrgyz Republic, which has now emerged as the major hotspot for crypto mining pools. Because of the increasing number of crypto mining projects in the country, the government has issued a notice declaring that the costs of power used by crypto miners would be raised. The notice, published on September 30, stated that the electric energy tariff would be changed by an increasing coefficient of 2.0. This announcement put a stop to further increases in BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

47634.4 50186.4

46016.7 51120.7

45082.4 52738.4

Pivot Point: 48568.7

BTC/USD - Technical Outlook 

On Tuesday, the BTC/USD pair is trading with a strong bullish bias at the 49,425 level. On the 4-hour timeframe, Bitcoin has violated the double top pattern and a pivot point resistance level of 48,413 and now it’s facing strong resistance at the 49,965 level.

On the 4-hour timeframe, Bitcoin has formed a "Three White Soliders" pattern that supports a bullish bias among investors. Further, on the higher side, the breakout of the 49,425 level exposes the bitcoin price towards the 49,962 and 50,975 levels. While the addition continues, resistance will prevail at the 52,524 level.

On the lower side, the BTC/USD’s immediate support holds around 48,413 and 46,865 levels. Bullish bias reigns supreme over the 48,413 level, and vice versa. All the best!

Spanish Unemployment Change Ahead

The EUR/USD pair ended the day at $1.1594, having reached a high of $1.1608 and a low of $1.1562.The EUR/USD currency pair reversed its course on the starting day of the new month after falling for five consecutive sessions. The currency pair EUR/USD reversed its course on Friday amid the recent weakness in the U.S. dollar. The greenback was facing pressure on the day as both the DXY and the U.S. Treasury yields were declining. The U.S. Dollar Index fell to 93.99, whereas the U.S. Treasury Yield on the 10-year note fell to 1.46%, which added pressure on the greenback and, hence, the EUR/USD pair gathered strength.

However, due to Europe's ongoing energy crisis, the single currency, the Euro, was not reaping many benefits. European gas hit a record high of 100 euros on Friday, as China escalated a global battle for energy supplies that threatened to derail the economic recovery.

China has ordered its state-owned energy companies to secure supplies at any cost this winter, which has intensified a battle for liquefied natural gas and coal cargoes as flows into Germany through Russian pipelines tumble. These negative developments raised concerns and raised uncertainty in the market that prompted risk-off market sentiment. However, the declining price of the U.S. dollar added strength to the EUR/USD pair and kept it higher on the first day of October.

On the data front, at 11:00 GMT, German retail sales in August fell to 1.1% from 1.6% expected, weighing on the Euro and capitulating further gains in EUR/USD.

At 11:45 GMT, the French Gov Budget Balance showed a deficit of -178.0B against the previous -166.6B. At 12:15 GMT, the Spanish manufacturing PMI remained flat with an expected reading of 58.1. At 12:45 GMT, the Italian Manufacturing PMI also came in line with the expectations of 59.7. The French Final Manufacturing PMI remained in line with the forecasts of 55.0. At 12:55 GMT, the German Final Manufacturing PMI remained unchanged at 58.4. At 13:00 GMT, the Final Manufacturing PMI for the whole bloc also came in line with the prediction of 58.6. The CPI Flash Estimate surged to 3.4% against the forecasted 3.3% and supported the Euro. That added further support to the currency pair of EUR/USD. The Core CPI Flash Estimate remained flat at 1.9%.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index from August rose to 0.3% against the anticipated 0.2% and supported the U.S. dollar, which capitulated further gains in the EUR/USD pair. Personal income remained flat at 0.2%. Personal spending surged to 0.8% against the predicted 0.7% and supported the U.S. dollar. At 18:45 GMT, the final Manufacturing PMI also remained flat with an estimate of 60.7. At 19:00 GMT, the ISM Manufacturing PMI improved to 61.1 against the forecasted 59.6, supported the U.S. dollar, and added pressure on rising prices of EUR/USD. The Revised UoM Consumer Sentiment advanced to 72.8 against the estimated 71.0 and supported the U.S. dollar. Construction spending fell to 0.0% from 0.3% expected, weighing on the U.S. dollar and adding to the EUR/USD pair gains. Moreover, the ISM Manufacturing Price Index increased to 81.2 from 78.1 expected, supporting the U.S. dollar. The Revised UoM Inflation Expectations fell in September to 4.6% from August's 4.7%.

EUR/USD Intraday Technical Levels

Support Resistance

1.1595 1.1614

1.1583 1.1623

1.1575 1.1634

Pivot Point: 1.1603

EUR/USD - Technical Outlook

The EUR/USD currency pair is trading with a bullish bias at 1.1607 level as the pair is facing a strong resistance at 1.1612 level. The double top pattern extends such resistance, and a breakout above this level exposes the pair towards 1.1625 and 1.1635 level. Further on the higher side, the breakout of 1.1632 level exposes the EUR/USD pair towards 1.1655.

On the lower side, the bears may find support at the 1.1562 level, whereas the violation of 1.1587 exposes the pair towards 1.1568 and 1.1523 levels. On the bullish side, the immediate resistance stays at the 1.1620 level, and a breakout above 1.1620 level exposes EUR/USD towards the 1.1658 level. On the hourly timeframe, the EUR/UD pair has closed bullish candles above 1.1587 pivot point level, which is adding buying pressure on the pair. All the best!

US NFP Figures to Control the Market This Week

During Monday's Asian trading hours, the precious-metal price succeeded in extending its early-day winning streak and hitting a near two-week high as the US Dollar Index, which tracks the performance of the greenback against the bucket of six major currencies, dropped below 94.00 to its lowest since September 29. Thus, the bearish bias surrounding the US dollar was seen as a key factor that provides additional support to the dollar-denominated commodity (gold). In the meantime, the market's risk-of sentiment, triggered by multiple factors, also played a major role in supporting the yellow-metal prices. Investors are turning towards the safe-haven yellow metal as increasing concerns over the latest COVID-19 outbreaks boosted safe-haven demand in the market.

Apart from the virus concerns, the ongoing fears over the Sino-American phase one trade deal put some additional burden on the market's trading mood. This was seen as one of the key factors that kept the gold prices higher. Moreover, New Zealand’s Prime Minister Jacinda Ardern called for a snap-lockdown on additional regions also put a dent in the market trading mood. At this particular time, the gold price is trading at 1,761.78 and consolidating in the range between 1,757.88 and 1,765.73.

Despite the positive remarks by US President Joe Biden and House Speaker Nancy Pelosi suggesting the much-awaited infrastructure spending bill will be out soon, the market's trading sentiment failed to stop its early-day sluggish performance and remained well offered on the day. However, the reason could be attributed to the long-lasting fears concerning the US-China trade relationships and the suspension of the Evergrande shares in Hong Kong, which simply put the investors under pressure. Furthermore, the declines in the market's trading sentiment were further bolstered by the concerns over the US debt ceiling talks, as policymakers remained worried after Democrats had to step back from voting on the bill on Thursday. As per the latest report, the share trading in debt-laden Evergrande was stopped in Hong Kong without any immediate explanation, which rekindles investors' nerves about the possibility of global contagion risk of the property giant fallout. The collapse at Evergrande could put an additional negative impact on the already unstable Chinese economy and spell a cast on global growth.

In addition to this, the fears over the Sino-US phase one trade deal put some additional burdens on the market's trading sentiment. However, the concerns have appeared after CNBC relied on anonymous sources to say that US Trade Representative Katherine Tai will announce that China hasn’t complied with the phase one trade deal during her speech on Monday. Although worsening COVID conditions in Australia and New Zealand, as well as cautious sentiment ahead of the Fed meeting, suggest that market movements will be limited.However, the negative appearance of US stock futures highlights the risk-off sentiment, which tends to benefit the dollar-denominated commodity gold.

Despite the risk-off market sentiment, the broad-based US dollar failed to stop its early-day bearish performance and remained sour during the 1st-half of the Asian session. The US Dollar Index, which tracks the performance of the greenback against the bucket of 6-major currencies, dropped below 94.00 to its lowest since September 29. However, the reason could be tied to the lower Treasury yields. Meanwhile, the cautious sentiment ahead of Fed speeches also played a major role in undermining the dollar. Therefore, the declines in the US dollar were seen as one of the key factors that helped gold prices to stay bid as the price of gold is inversely related to the price of the U.S. dollar.

Looking forward, market traders will keep their eyes on next week’s US jobs report, which will be important even though Fed Chair Jerome Powell showed readiness to accept softer numbers while reiterating the hawkish bias for Fed tapering. Apart from this, the headlines over the Sino-US tussle and the Taliban-Afghanistan matter will also be key to watching.

GOLD Intraday Technical Level

Support Resistance

1760.89 1766.34

1758.12 1769.02

1755.44 1771.79

Pivot Point: 1763.57

GOLD - Technical Outlook

On Monday, the precious metal gold is trading at 1,762 with a bullish bias. It is getting immediate support at the 1,758 level, which has been extended by an intraday pivot point. Gold's bullish trend is supported by the closing of candles above this level. While a continued upward trend exposes the metal to the next resistance level of 1,766 level, gold's next resistance level will prevail around 1,772 and 1,781 level.

On the downside, the negative trendline is acting as a support for gold. It might cause a rebound in gold prices above $1,758. However, a bearish breach below this level may cause a sell-off till the levels of 1,743 and 1,737. Consider buying above the 1,758 mark and selling below it. All the best!

Double Top Pattern in Play

The BTC/USD exchange rate ended the day at $48,243.0, with a top of $48,187.0 and a low of $43,124.0. The BTC/USD achieved its highest level since September 7th on Sunday, as the cryptocurrency market experienced some encouraging developments. Chamath Palihapitiya, Chairman of Virgin Galactic and CEO of Social Capital, stated that bitcoin has effectively supplanted gold. He also forecasted that the cryptocurrency's price would reach $200,000 in the next five years. According to the executive, the market capitalization of bitcoin will rise in the future.

The current price of bitcoin is $48000, with a market capitalization of $905.8 billion. The CEO of Social Capital stated that he purchased a large amount of bitcoin in 2013 and has not purchased any more since. Over the weekend, his upbeat predictions and comments boosted the value of bitcoin. El Salvador's President, Nayib Bukele, recently stated that his country's newly built volcanic mining operation had produced its first bitcoin. He admitted that the profits from the volcano mining facility were still minor, but he was positive about the initiative and predicted that the figures will soon rise.

According to Bukeles, they were still testing and installing. The first bitcoin, however, was mined from the volcanode, according to an official release. Bukele's statements also led to the already soaring price of BTC/USD. Hatten Land Ltd. and Frontier Digital Asset Management Pte Ltd. have teamed up to oversee over 1000 crypto mining rigs operating within Hatten Group properties in Malaysia.

Hatten Group revealed that both firms will deploy numerous new digital currency mining machines in the fourth quarter of 2021. Frontier also has approximately 700 mining rigs in Singapore. Hatten's declaration that many of its malls would be renovated and used for digital currency mining and e-commerce spurred the new alliance. To decrease energy costs and emissions, the locations will be largely powered by solar panels, transforming Hatten into a green energy company. This piece of news boosted BTC/USD values throughout the weekend.

BTC/USD Intraday Technical Levels

Support Resistance

47182.4 49245.4

46121.7 50247.7

45119.4 51308.4

Pivot Point: 48184.7

BTC/USD - Technical Outlook

On Monday, the BTC/USD pair is trading with a strong bullish bias at the 47,635 level. On the 4-hour timeframe, the Bitcoin has violated the pivot point resistance level of 46,459 level and now it’s facing a strong resistance at 48,115 level.

On the 4-hour timeframe, the Bitcoin has formed a double top pattern that’s extending solid resistance at 48,115 level. A bullish breakout of 48,115 level exposes the Bitcoin price towards 49,690 level. Further on the higher side, the Bitcoin may trade bullish until 51,346 and 52,546 levels.

On the support side, immediate support prevails at the 46,459 level, and a breakout below that level exposes the pair towards the 44,803 level. The RSI and Stochastic has entered the overbought zone, therefore, the odds of a bearish correction remains strong. Therefore, the bullish bias dominates above 48,115 level and vice versa. All the best!

Eyes on ISM Manufacturing PMI

The yellow metal price failed to stop its early-day bearish rally and remained well offered near the $1,750 level. The safe-haven metal has been unable to benefit from the market's pessimism, as broad-based U.S. dollar strength has been viewed as another critical factor keeping gold prices under pressure. Investors remain worried over delays in the U.S. infrastructure bill vote, looming China Evergrande risks, and concerns over global economic growth, which have some bearish impact on the market's trading sentiment.  The gold price is trading at 1,752.34 and consolidating in the range between 1,750.87 and 1,756.95. The XAU/USD was seen consolidating between ranges through the first half of the trading activity of the day and lost some of its recent substantial gains recorded over the past six trading sessions. 

The market's trading sentiment failed to stop its previous long downward performance and remained depressed on the day amid looming China Evergrande uncertainties and concerns over global economic growth. The market's trading sentiment declines were rather unimpressed by mixed U.S. economic releases, which showed that the world's biggest economy developed at a 6.7% annualised pace in the 2nd quarter as against 6.6% estimated. This might be offset by a surprise jump in Weekly Initial Jobless Claims to 362K from 351K in the previous week. This reinforced recent symptoms of slowing down economic momentum in the world's largest economy. 

On the USD front, the broad-based U.S. dollar maintained its previous-day bullish bias and remained well bid on the day as expectations that the Fed would begin tapering its bond purchases as soon as November and raise interest rates in 2022 acted as a tailwind for the dollar. This, along with a fresh leg up in U.S. Treasury bond yields, played a significant role in underpinning the U.S. dollar. 

The gains in the USD were further bolstered by the mixed U.S. economic releases, which showed that the world's largest economy expanded at a 6.7% annualised pace in the second quarter, as against the 6.6% estimated. Thus, the recent leg up in the U.S. dollar could cap gains for non-yielding gold. Looking forward, market traders will keep their eyes on Fed Chair Jerome Powell's testimony before the Committee on Financial Services for some short-term trading opportunities. In the meantime, the headlines over the coronavirus matter will be key to watch.

GOLD Intraday Technical Level

Support Resistance

1743.61 1759.76

1736.08 1768.38

1727.46 1775.91

Pivot Point: 1752.23

GOLD - Technical Outlook 

On Friday, gold was trading with a bearish bias around 1,752, with immediate resistance at 1,760. On the 2-hourly timescale, we can see that a bearish trendline is extending this resistance level.

Gold has closed a Doji pattern on the 2-hourly chart, which, as we all know, indicates investor hesitation. As a result, we can anticipate a minor negative pullback in gold prices.

Gold's immediate support is at 1,747 levels on the downside. A break of this level exposes the precious metal to levels of 1,735 if it breaks below it. A breakthrough of 1,735 levels opens the metal to a 1,731 support level on the downward side.

What will happen if gold breaks through the 1,760 resistance level? It's expected to travel towards the 1,773 and 1,784 resistance levels. Consider selling below 1,760 and buying above 1,760. All the best!

Eyes on ISM Manufacturing PMI

The EUR/USD pair closed at $1.1581 after reaching a high of $1.1611 and a low of $1.1562. On Thursday, the EUR/USD currency pair continued its bearish streak for the fifth consecutive session, falling to its lowest level since mid-July 2020. Despite the U.S. dollar being weak on Thursday, the currency pair kept on declining for the day amid rising concerns about the European energy crisis in the region. 

On Thursday, a note from the European Commission showed that Eurozone finance ministers would discuss soaring energy prices next week. The discussion was prompted by concerns that it could slow economic recovery, impact investment decisions, and disproportionately hit the poorest.

The European Central Bank, or ECB, believes that higher gas, oil, and electricity prices are only temporary and will subside in 2022, a view shared by many eurozone governments. However, the matter needs to be addressed separately, and the practice to deal with the problem must be prepared as the budget for 2022 will be heavily affected by the energy costs.

According to the note issued by the European Commission, the current rise in energy prices was already impacting economies, and there was a need to discuss the impact of higher prices on national budgets. These concerns kept the Euro under pressure on Thursday, contributing to the EUR/USD pair's loss.

On the data front, the German Prelim CPI in September dropped to 0.0% against the forecasted 0.1% and weighed on the single currency Euro and added to the loss in EUR/USD. At 11:45 GMT, French consumer spending surged to 1.0% against the forecasted 0.0% and supported the single currency euro. In September, the French Prelim CPI dropped to-0.2% against the projected-0.1% and weighed on the Euro, adding further loss to the EUR/USD pair. 

At 12:55 GMT, the German unemployment change in August came in at-30K against the projected-38K and weighed on the single currency Euro. At 13:00 GMT, the Italian Monthly Unemployment Rate surged to 9.3% against the forecasted 9.2%, weighed the Euro, and added further losses in the EUR/USD pair. At 14:00 GMT, the Italian Prelim CPI dropped to -0.1% against the expected -0.3% and supported the Euro.

From the U.S. side, at 17:30 GMT, the final GDP for the quarter rose to 6.7% against the predicted 6.6% and supported the U.S. dollar and added to the loss in the EUR/USD pair. The unemployment claims from last week fell to 362K against the anticipated 333K and weighed on the U.S. dollar. The final GDP price index for the quarter remained flat with expectations of 6.1%. At 18:45 GMT, the Chicago PMI for September also came in line with the predictions of 64.7.

EUR/USD Intraday Technical Levels

Support Resistance

1.1559 1.1608

1.1536 1.1634

1.1509 1.1657

Pivot Point: 1.1585

EUR/USD - Technical Outlook 

The EUR/USD currency pair is trading with a bearish bias at 1.1577 level as the Euro has violated a strong support level of 1.1583. A closing of candles below this level suggests a strong selling bias in the currency pair. On the lower side, the bears may find support at the 1.1562 level, whereas the violation of 1.1560 exposes towards 1.1536 and 1.1511 levels. On the bullish side, the immediate resistance stays at the 1.1605 level, and a breakout about this level can expose EUR/USD towards the 1.1625 level.

On the hourly timeframe, the EUR/UD pair has closed neutral candles below 1.1583 pivot point level, which is adding selling pressure on the pair. Alongside, the breakout of the 1.1625 level exposes the pair towards 1.1661 and 1.1690 levels. Later today, the investors will be waiting for U.S. ISM Manufacturing PMI to determine further trends in the market. All the best!

Symmetrical Triangle Breakout

The BTC/USD closed at $43,830.0 after posting a high of $44,107.0 and a low of $41,432.0. The BTC/USD pair surged on Thursday and resumed its upward momentum amid recent positive cryptocurrency ecosystem developments. On late Wednesday, President Nayib Bukele revealed that gas stations in El Salvador would provide a discount of $0.20 on each gallon of fuel if the payment is made using the Chivo wallet. These gas benefits can be enjoyed from September 30 by all Salvadorans, public transport users, and any local company using the Chivo wallet. The announcement also suggested a deadline of October 14 for the gas benefits.

Three primary reasons were provided for the said discount on fuel prices, including combating the international increase in fuel prices, reducing the cost of supply chains in El Salvador, and promoting the use and continued education of bitcoin through the state-sponsored Chivo wallet app. This news added further gains to BTC/USD.

A Puerto Rican billionaire businessman, Orlando Bravo, the co-founder of Thoma Bravo, has recently talked about bitcoin and said that cryptocurrencies would play a significant role in the future monetary system. He also acknowledged that he held bitcoin and was very bullish about the cryptocurrency's future potential, as he predicted a surge in its prices in the coming years. These comments from a billionaire businessman added further strength to the BTC/USD currency pair.

Another reason behind the bitcoin rally on Thursday could be the latest comments from the Chairman of the Federal Reserve, Jerome Powell. He said that he had no intention of banning cryptocurrencies. However, stable coins need more regulatory oversight. The comments were made in his testimony before the House Financial Services Committee meeting.

Furthermore, according to a billionaire venture capitalist and founder & CEO of investment firm Social Capital, Chamath Palihapitiya, who has said that he believes bitcoin has effectively replaced gold, he said that concerns about high inflation have increased the need to keep an eye on three types of assets, including cash-generating businesses, hypergrowth companies, and non-correlated assets like bitcoin. These comments further added to the gains in the BTC/USD price on Thursday.

BTC/USD Intraday Technical Levels

Support Resistance

42139.0 44814.0

40448.0 45798.0

39464.0 47489.0

Pivot Point: 43123.0

BTC/USD - Technical Outlook

On Friday, the BTC/USD pair is trading with a strong bullish bias at the 44,782 level, soaring from the 43,301 support level. Currently, the BTC/USD's immediate resistance stays at the 44,850 level, and bullish crossover above the 44,850 level exposes the pair towards the 45,842 resistance level.

On the support side, immediate support prevails at the 44,091 level, and a breakout below that level exposes the pair towards the 43,123 pivot point support level. On the 4-hour timeframe, the BTC/USD has violated the symmetrical triangle pattern that supports the pair at 43,031 levels. Therefore, the bullish bias dominates above this level and vice versa. All the best!